#VietnamCryptoPolicy Vietnam has made significant strides in cryptocurrency regulation with the passage of the Law on Digital Technology Industry on June 14, 2025. This law grants full legal recognition to crypto assets and establishes a clear regulatory framework, set to take effect on January 1, 2026.

*Key Aspects of the Law:*

- *Classification of Digital Assets*: The law categorizes digital assets into two main types:

- *Virtual Assets*: Digital assets used for exchange or investment.

- *Crypto Assets*: Digital assets that rely on encryption technology to validate transactions and ownership, such as Bitcoin and Ethereum.

- *Regulatory Framework*: The law empowers the Vietnamese government to develop detailed implementation guidelines, including licensing requirements, compliance protocols, consumer protection measures, and robust Anti-Money Laundering (AML) standards.

- *Cybersecurity and AML Measures*: The legislation mandates strict oversight mechanisms to meet global standards and prevent illicit activities, addressing Vietnam's placement on the Financial Action Task Force (FATF) gray list in 2023.

- *Incentives for Technology Companies*: The law introduces tax breaks, favorable land-use policies, and research and development subsidies for technology companies, particularly those in chip design and AI data centers.

*Impact and Expectations:*

- *Boosting Market Confidence*: The regulatory clarity is expected to significantly boost market confidence in Vietnam's digital asset sector and attract institutional investors.

- *Combating Cryptocurrency Fraud*: The legislation aims to create a safer environment for legitimate cryptocurrency activities, addressing the country's struggles with widespread cryptocurrency scams.

- *Positioning Vietnam as a Digital Tech Hub*: The law demonstrates Vietnam's ambition to become a comprehensive digital technology hub, with a focus on emerging technologies like AI, semiconductors, and digital infrastructure.